Details of the offering:
- Name of the Issuer: IIFL Samasta Finance Ltd.
- Product: Senior unsecured Bonds (regulated by SEBI)
- Yield: 10.00% p.a.
- Tenure: 7 months
- Min Investment: Rs. 6,50,000
- Interest repayment: Monthly
- Principal repayment: Monthly from Jan ‘24
- Rating: CRISIL 'AA-'
Key Highlights:
- IIFL Samasta is an NBFC-MFI that has presence in 19 states serving 2.3 million rural and semi-urban customers
- As of Dec 2023, the company had an AUM of INR 1307 crore and a Net Worth of INR 1,322 crore
- The organization has been profitable for last 15 years, despite macro-economic shocks like Covid-19
- IIFL Finance Ltd is the majority shareholder for IIFL Samasta with a 99.51% shareholding
- The company has witnessed strong growth in FY23 – balance sheet grew by 17.37% to INR 10,451.1 crore, revenue growth by 15% reaching INR 2,015 crore and PAT grew by 198% to INR 382.76 crore
Overview:
IIFL Samasta, a microfinance entity that was acquired by India Infoline (IIFL) in 2016, is one of India’s largest MFIs. Established in March 2008, the company has become a prominent name in providing innovative and affordable financial products for women in underserved segments of society, both in rural and semi-urban areas.
With a wide range of loans tailored for underserved individuals who lack access to traditional banking services, IIFL Samasta operates across the country, effectively providing responsible financial products and services that act as catalysts for sustainable and inclusive economic growth.
Management:
Venkatesh N, is the MD and Founder of IIFL Samasta. He has over 20 years of experience in the financial services industry as an entrepreneur. Venkatesh was also the founder of the erstwhile PNV Techno Acquisitions Pvt. Ltd. that marketed financial products, and Affluence Edifice, that provided wealth management services for individuals. He holds a Bachelor’s Degree in the Computer Science and has completed the Harvard Business School- ACCION Program on Strategic Leadership in Microfinance.
Key Financials:
All figures in INR crore
|
Balance Sheet |
FY 22 |
FY 23 |
9m FY23 |
|
Cash & cash equivalents |
455.08 |
227.11 |
734 |
|
Bank balances |
255.56 |
382.39 |
436 |
|
Loans Portfolio |
5,518.63 |
7,736.08 |
8217 |
|
Other Receivables |
8.48 |
17.98 |
43.05 |
|
Other financial assets |
51.96 |
289.48 |
226.72 |
|
Other non-financial assets |
94.8 |
81.42 |
84.87 |
|
Total Assets |
6,394.43 |
8,904.10 |
10451.1 |
|
Debt Securities |
514.81 |
477 |
1055 |
|
Borrowings (other than debt securities) |
4,603.36 |
6,328.70 |
6634 |
|
Other Financial Liabilities |
91.36 |
232.8 |
113.34 |
|
Non-Financial Liabilities |
19.55 |
40.04 |
36.33 |
|
Total Equity |
999.28 |
1,322.15 |
1903.55 |
|
Total Liabilities & Equity |
6,394.43 |
8,904.10 |
10451.1 |
|
P&L Statement |
FY 22 |
FY 23 |
9m FY23 |
|
Interest Income |
984.23 |
1,539.63 |
1749.23 |
|
Total Income |
1,019.93 |
1,753.51 |
2015.74 |
|
Finance cost |
395.1 |
586.98 |
639.24 |
|
Impairment on Financial instruments |
98.72 |
4.37 |
24.8 |
|
Profit Before Tax |
58.95 |
158.51 |
499.81 |
|
Tax Expense |
8.35 |
30.33 |
117.06 |
|
PAT |
50.6 |
128.18 |
382.76 |
The organization is dedicated to supporting low-income women, encompassing cultivators, agricultural laborers, vegetable and flower vendors, cloth traders, tailors, craftsmen, as well as household and industrial workers. By assessing their income-generating potential and reliability, they determine the tailored financial assistance needed. To cater to a diverse customer base, they provide a comprehensive range of loan products.
These include Income Generation Loans, Dairy Cattle Loans (Surabhi), Product Loans (Suvidha), MSME Loans (Swabhimaan), Education Loans, Top-up Loans (Samvardhana), LAP (Sampark) and Insurance. Each product is meticulously designed to address specific financial needs and facilitate clients' path to economic empowerment.
Lenders:
The prominent lenders in IIFL Samasta include:
Banks:
- Bank of India
- Bank of Maharashtra
- Canara Bank
- State Bank of India
- Union Bank of India
- Indian bank
NBFCs and DFIs:
- Northern Arc Capital
- Mahindra & Mahindra Financial Services Ltd
- NABKISAN Finance Ltd
- NABARD
- Hinduja Leyland Finance
- TATA Capital
- SIDBI
Disclaimer: The content of this blog should not be considered as financial or investment advice. Readers/Viewers may consult their financial advisor before any investment.